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Brazil's central bank allows cross-border purchases via prepaid payment accounts

With the authorization, conversion of foreign-exchange amounts to Brazilian reais is immediate during the transaction

REUTERS/Adriano Machado
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  • Another new decision makes it easier to present electronic documents in foreign-exchange transactions;
  • The financial authority says it wants to foster competitiveness in international payments.

The Brazilian Central Bank announced two changes in foreign-exchange regulation, making it easier to present electronic documents and allowing the use of prepaid payment account cards for cross-border purchases.

According to the financial authority, the goal of the first measure is to generate more efficiency in operations in the foreign exchange market, using solutions such as images or voice recordings, graphic registers of agreement signals and e-mailing of electronic signatures.

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The other decision allows the use of prepaid payment accounts in Brazilian reais for the purchase of foreign goods and services through so-called “facilitators”, such as e-wallets, “contributes to stimulate greater competitiveness in the segment of international payments”, said the central bank.

Digital payment accounts emerged at the same time as fintechs and allow payments and transfers to be made through apps.

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According to the central bank, with the authorization for international purchases via prepaid payment accounts, the conversion to the foreign-exchange amounts in reais is immediate, which allows the consumer to quickly know the cost of what he or she is buying.